Bayer sells units for $7 billion to clear path for Monsanto takeover

Bayer AG is selling some of its Crop Science business to BASF to help clear the way for its pending $66 billion acquisition of Monsanto Co.

Bayer announced Friday that it had signed an agreement to sell the units for 5.9 billion euro, or about $7 billion.

"We are taking an active approach to address potential regulatory concerns, with the goal of facilitating a successful close of the Monsanto transaction,” Werner Baumann, Bayer chairman, said in a statement.

BASF is buying Bayer's glufosinate-ammonium business and related technology for herbicide tolerance, essentially all of the company’s field crop seeds businesses, and the respective research and development capabilities. Seeds businesses being acquired by BASF include the global cotton seed business (excluding India and South Africa), the North American and European canola seed businesses and the soybean seed business. The deal includes facilities that employ more than 1,800, primarily in the U. S., Germany, Brazil, Canada and Belgium.

Bayer reiterated Friday that is plans to close the Monsanto merger by early 2018. The company originally had said it planned to close the deal by the end of this year, but last month said it had pushed back the expected closing date.